The Spirits Business reported on Monday that Pernod Ricard completed its sale of Imperial Blue, the third-largest whisky brand in India by volume. Tilaknagar Industries purchased the whisky brand for a hefty $485M.
“The acquisition of Imperial Blue significantly scales up our business, representing a decisive step in our ambition to build a truly pan-India presence across all Indian-made foreign liquor (IMFL) categories,” said Chairman and Managing Director of Tilaknagar Industries Amit Dahankuar in a statement. “This acquisition also accelerates our premiumization journey, enabling us to broaden our offerings across prestige-and-above price-points and enhance the value we deliver to consumers.”
The outlet reports that 116 employees will be transferred from Pernod Ricard to Tilaknagar. Tilaknagar appears to be having a busy final quarter, as the brand launched an Indo-Scottish Pure Malt Whisky by Seven Islands in November. The whisky costs a modest $59. Tilaknagar has a robust following due to its Mansion House brandy brand, which is the world’s top-selling brandy.
News of Pernod Ricard’s move to sell Imperial Blue first made headlines in the summer. Pernod claimed selling the popular whisky would “strengthen” its portfolio and give it the bandwidth to focus more on premiumization. Interestingly enough, Tilaknagar was not the only heavy hitter in the spirits business interested in purchasing the brand.
The Drinks Business reported in June that Suntory bid on Imperial Blue Indian Whisky — not once, but twice. Though the beverage giant refused to comment on speculation, it did not deny the local media’s claim that it was interested in the Indian whisky brand. The company’s interest allegedly grew after news broke out that Tilaknagar may have been facing hurdles in raising the $500 million to purchase the whisky brand.
The outlet reported that Suntory initially bid on Imperial Blue, but walked it back after Pernod Ricard purportedly asked for $1 billion US for the brand. It appears that Pernod Ricard slashed the asking price to around $600 million at the time Suntory apparently renewed its interest.
Eventually, an agreement was reached between Tilaknagar and Pernod Ricard, and it was finalized in October.
“We are pleased to announce the sale of the Imperial Blue business division, a strategic move to sharpen our focus on more profitable and faster growing brands in India, like in the rest of the world,” said Chairman and CEO of Pernod Ricard, Alexandre Ricard, in a statement. “This transaction represents a win-win for all stakeholders involved, both at the global and local level. It fuels our ambition to succeed even further in one of our top markets. This will further streamline our operations as we continue to invest in India’s outstanding growth.”
CEO of Pernod Ricard India, Jean Touboul, shared that the sale allows the company to allocate funds to “high-growth brands” like Royal Stag and Blenders Pride. The company additionally intends to focus on international whiskies like Ballantine’s and Jameson, which already have a major footprint in the country.
In February, The Spirits Business reported on the top 10 export markets for Scotch whisky by volume, with India ranking number 1. The United States earned the number 3 spot, and France came in at number 2. Needless to say, India is a critical market for scotch whisky, and whisky in general. The company drank 192 million bottles in 2024, marking a 14.6% increase.
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